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P2P Lending Service Providers Must Know These Rules!

On 4 July 2022, the Financial Services Authority (OJK) issued new regulations for the financial technology industry especially related to joint funding or the so-called fintech peer-to-peer (P2P) lending under POJK Number 10/POJK.05/2022 concerning Information Technology-Based Joint Funding Services/LPBBTI (POJK 10/2022). According to the OJK Deputy Commissioner for Public Relations and Logistics, Anto Prabowo, this new regulation aims to refine the previous regulation, namely POJK 77/2016, which was later revoked and no longer enforced. 

In Chapter 18 of POJK 10/2022, regarding Closing Provisions, the new regulation stipulates that POJK 77/2016 is declared to remain valid as long as it does not conflict with the provisions in POJK 10/2022. Furthermore, Article 199 POJK 10/2022 stipulates that when this new regulation comes into force, then Article 30 letter a POJK Number 4/POJK.05/2021 concerning Implementation of Risk Management in the Use of Information Technology by Non-Bank Financial Services Institutions (LJKNB), is declared no longer valid for P2P lending service providers. The article previously stipulated that in implementing Information Technology, LJKNB is required to guarantee that the acquisition, processing, use, storage, updating, and/or disclosure of consumers’ data is carried out based on the consent of the consumers concerned unless otherwise stipulated by laws and regulations.

A. Matters Regulated in the New Regulation (POJK 10/2022)

  1. The form of legal entity for P2P lending service providers is a limited liability company (regulated in Article 2).
  2. Share ownership of P2P lending service providers is only allowed to be owned by: 1) Indonesian citizens (WNI) and/or Indonesian legal entities, or 2) Indonesian citizens and/or Indonesian legal entities, together with foreign legal entities and/or Foreign Citizens (WNA).
    For foreigners who wish to become shareholders of P2P lending service providers, this can only be done through transactions on the stock exchange. Furthermore, it is regulated that direct or indirect foreign ownership is prohibited from exceeding 85% (eighty-five percent) of the total paid-up capital. This limitation does not apply to P2P lending service providers that are public companies and trade their shares on the stock exchange. (regulated in Article 3)
  3. P2P lending service providers must have paid-up capital of at least IDR 25,000,000,000.00 (twenty-five billion rupiahs) at the time of establishment. The capital must be paid up in cash and in the form of a time deposit on behalf of the Provider at a commercial bank, sharia commercial bank, or sharia business unit of a commercial bank in Indonesia (Providers based on Sharia Principles are required to deposit the capital at sharia commercial banks). Sources of funds are prohibited from money laundering activities, terrorism funds, funds for the proliferation of weapons of mass destruction, other financial crimes, and loans (regulated in Article 4).
  4. Before carrying out LPBBTI business activities, P2P lending service providers must first obtain a business license from the Financial Services Authority. The following is a list of documents that must be prepared to obtain the license:
    1. a copy of the deed of establishment of the legal entity along with the proof of validation by the competent authority
    2. copy of the deed of amendment to the articles of association along with the proof of approval, and/or letter of receipt of notification from the competent authority (if any)
    3. list of shareholders along with details of the size of each shareholder up to the last shareholder and/or beneficial owner and a list of other companies owned by the shareholder
    4. shareholder’s data
    5. photocopy of annual tax returns for the last 2 (two) years before investment for prospective individual shareholders
    6. other documents showing the financial capacity and sources of funds for prospective individual shareholders
    7. photocopy of proof of payment of paid-up capital
    8. documents proving that the paid-up capital did not come from a loan
    9. data on members of the Board of Directors and members of the Board of Commissioners
    10. proof of work competency certificate from a professional certification body in the field of financial technology registered with the Financial Services Authority for the Board of Directors and Board of Commissioners
    11. evidence of operational readiness that supports business activities
    12. business feasibility study for the first 3 (three) years
    13. additional documents for Providers based on Sharia Principles
    14. confirmation from the supervisory authority in the country of origin of the foreign party if there is direct participation by a foreign legal entity that has supervisory authority in the country of origin
    15. proof of payment of licensing fees in the process of granting business licensesIn the licensing process, P2P lending service providers present business models and electronic systems to OJK. Furthermore, OJK or other parties appointed by OJK can conduct a review at the office of the P2P lending service provider to ensure operational readiness. (regulated in Article 9)
  1. After the P2P lending service provider has obtained a business license, then the P2P lending service provider must submit an application for registration as an Electronic System operator (PSE) to the authorized agency no later than 30 (thirty) calendar days from the date of issuance of a business license from OJK (regulated in Article 8).
  2. Furthermore, in Article 8, OJK also regulates the cancellation of business licenses if the P2P lending service provider:
    1. does not comply with the provisions of Article 8 Paragraph 6, which states that P2P lending service providers are required to provide funding no later than 30 (thirty) calendar days after registering as a PSE.
    2. does not obtain a registration mark as a PSE within 60 (sixty) calendar days from the issuance of a business license from OJK.

P2P Lending

Read More: Starting in 2024, Be Careful of Penalties If You Don’t Have a Halal Certificate!

Moreover, POJK 10/2022 also clarifies the regulations regarding Controlling Shareholders, Directors, Board of Commissioners and Sharia Supervisory Board, Internal Audit, Experts, Total Funding and Total Equity. ET Consultant is here to help P2P lending service providers to be able to process business licensing smoothly and hassle-free so that businesses can immediately be operational without any hiccups.


ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

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An Indonesian group advisory or consulting firm that provides Business and Legal Consultant for local and multinational client support for start-ups and managing business operations in Indonesia. ET Consultant provides a solid legal foundation with experience, reasonable cost, reliable corporate & business legal services with excellence, integrity, and trusted services for ease of doing business in Indonesia.

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